Apple: Tide Has Turned (Rating Upgrade)
Nov. 15, 2023 5:57 PM ET Apple Inc. (AAPL)
Summary
- Apple Inc.'s Q4 results were decent, but guidance for the all-important holiday quarter was well below estimates.
- Apple revenue expectations are not trending in the right direction, but solid cost controls are really helping the bottom line.
- With inflation data suggesting the Fed might be done raising rates, Apple shares have rallied with the overall market The article discusses a shift in the author's perspective on Apple Inc. (AAPL) after the company's Q4 results and subsequent market behavior. While Apple's Q4 results were decent, the guidance for the crucial holiday quarter fell below estimates. Revenue expectations were not showing positive trends, but effective cost controls contributed to a strong bottom line. The author initially expressed concerns about Apple's revenue growth in a previous article, and the Q4 results confirmed these worries.Despite the less-than-encouraging outlook, Apple's shares did not react as expected. The author attributes this to broader economic factors, such as the Federal Reserve possibly ending rate hikes, leading to a rally in Apple shares along with the overall market. The article highlights Apple's ability to control costs, maintain solid margins, and generate impressive earnings per share growth even in the face of stagnant revenue.
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